Bill No.:         HB0022                                             Drafter: MQ

LSO No.:       14LSO-0068                                     Effective Date: 7/1/2014

Enrolled Act No.:    HEA0039

Chapter No.:                        CH0068

Prime Sponsor:       Joint Revenue Interim Committee

Catch Title:              Mineral tax-audit interest rate.

Subject: The bill amends the interest rate for delinquent mineral taxes (severance and property) as a result of mineral audits performed and clarifies the time period for mineral tax audits.

Summary/Major Elements:

· Specifies that in calculating interest due on ad valorem (property) taxes on mineral production resulting from an audit, taxpayer is first entitled to an offsetting credit for any taxes paid;

· County board of commissioners is bound by any decision made by the department of revenue in the course of an audit of mineral taxes concerning the time period in which interest on delinquent taxes accrues;

· Adds ad valorem (property) taxes to the same process under which severance taxes are audited (interest rate and time periods);

· Bill amends all mineral tax provisions in the exact same manner;

· Specifies that the new law only applies to mineral audits commenced after the effective date of the act.